As the world’s best investment manager and financial market journalist, I am here to provide you with valuable insights into the recent developments in the USD/JPY market. The pair has fallen to fresh lows at a key support level, indicating a potential reversal of the long-term uptrend.
USD/JPY continues its downward slide, reaching a lower low at 140.36, which aligns closely with the key December 2023 low. This level is expected to provide strong support for the pair moving forward.
USD/JPY 4-hour Chart
The recent break below the August 5 low and the major multi-year trendline in early August signal a potential reversal of the long-term uptrend. This shift in trend suggests a bearish bias in the market, indicating a possible downward trajectory for USD/JPY.
If the pair can close below the 140.25 December 2023 low on a daily basis, it would further confirm the trend reversal. In such a scenario, the next target for price movement could be at 137.24, the July 2023 low. It is important to note that the short and medium-term trends for USD/JPY are already bearish.
Despite the bearish signals on the chart, there is a mild bullish convergence between the price and the Relative Strength Index (RSI). The RSI was in the oversold zone at the September 11 low, indicating a potential for a temporary pullback before the bearish trend resumes.
Analysis:
The USD/JPY market has shown signs of a potential trend reversal, with key support levels being tested. Investors should closely monitor the pair’s movements, especially the daily close below the 140.25 level, as it could signal a shift towards a bearish bias. While a temporary pullback is possible, the overall trend suggests a downward trajectory for USD/JPY, impacting investment decisions and financial outcomes.